The oil distributors raised the price of gasoline by P2 per liter, diesel by P1.90 per liter and kerosene by P1.25 per liter effective at 6 a.m. today.
The latest increases do not include the impact of the additional 10-percent import duty on crude oil and refined products, which should spur an increase of more than a peso per liter.
“Petron will implement the following price increases effective 6 a.m. on May 12: P2 per liter for gasoline, P1.90 per liter for diesel and P1.25 per liter for kerosene. These reflect the movements in the international oil market,” Petron Corp. said in its advisory.
Petron aside, Pilipinas Shell Petroleum, PTT Philippines, Phoenix Petroleum Philippines, Seaoil Philippines, and PetroGazz announced similar price increases, while the other distributors were expected to follow.
The higher pump prices this week were driven by optimism as many countries have started to ease their COVID-19 lockdowns, thus spurring oil demand.
The Organization of Petroleum Exporting Countries has also started implementing a production cut of 10 million barrels per day, which was followed by other oil producers such as Norway, Canada, and America.
Malacañang issued Executive Order 1113 on May 2 imposing the additional 10-percent duty to boost the government’s budget for fighting COVID-19.
On May 5, the oil companies implemented an increase of P0.75 per liter of gasoline, but the prices of diesel and kerosene went down by P0.10 and P0.60 per liter, respectively.
The total year-to-date adjustments in oil prices now stand at a net decline of P14.52 per liter of gasoline, P16.99 per liter of diesel, and P22.50 per liter of kerosene, according to the Energy department.
Meanwhile, Pilipinas Shell has assured the Energy department of an ample fuel supply even as its Batangas refinery capable of producing 110,000 barrels per day goes on a temporary shutdown for a month starting in mid-May.
Pilipinas Shell says it will temporarily stop its refinery operations due to negative margins arising from low demand amid the COVID-19 pandemic.
“It’s a commercial decision that Shell made, but they assured us of adequate supply from present stock and through imports of finished products,” Energy Secretary Alfonso Cusi said.
The other oil refinery in the country is in Bataan, and it is owned by Petron and is capable of producing 180,000 barrels per day.
